Hiap Seng Engineering has posted earnings of $875,000 for its 1HFY2024 ended Sept 30, reversing its loss of $606,000 recorded for the same period last year.
Revenue was up 34% y-o-y to $12.1 million in the half-year period, with the cost of services rendered also increasing 19% y-o-y to $9.1 million in 1HFY2024.
The company’s gross profit more than doubled to $3.1 million for the same period, up over $1.4 million in 1HFY2023. Gross profit margin also improved to 25.2% in 1HFY2024, up from 15.5% in the corresponding period last year.
The increase in revenue came from an increased volume of maintenance jobs, the shutdown of a maintenance project and higher service income during the period, offsetting the reduction of other income recorded, which reduced from approximately $1.0 million to $400,000 in 1HFY2024 due to the receipt of a non-recurring government grant in 1HFY2023.
The company’s administrative expenses also decreased by $400,000 in 1HFY2024 from $2.4 million in 1HFY2023 from lower professional fees of $300,000 and other cost cutting measures.
As at Sept 30, cash and cash equivalents stood at $14.5 million.
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Amidst rising costs and tighter labour conditions that will be implemented in January 2024, Hiap Seng says it will continue to exercise further prudence in managing its operating costs.
On Oct 11, the company announced a non-underwritten, renounceable rights issue of 607.5 million rights shares at a ratio of 2 new shares for 1 existing share at a price of $0.00543 to raise $3.3 million, the proceeds of which will be used for working capital purposes.
Shares in Hiap Seng closed flat at 2 cents on Nov 14.
